BREAKING NEWS

National Real Estate Law changes went into effect on August 17, 2024.

In March 2024, the National Association of Realtors (NAR) agreed to a $418 million settlement to resolve multiple lawsuits with sellers who said the organization artificially inflated selling fees, also known as commissions.

The new law requires the following:

  1. Formal Buyer’s Agreement

  2. No Advertised Commissions

Before the NAR settlement, buyers and their agents typically had a handshake agreement. More importantly, buyers essentially enjoyed free representation, as the seller usually paid the buyer’s agent commission! Now, these new rules mean that buyers and their agents must have a formal written agreement that outlines fees and services, and if the seller does not offer a buyer’s commission, the buyer will be responsible for covering the agent’s cost. 

The average real estate commission is over $20,000.

Additionally, according to the National Association of Realtors, commissions cannot be financed. That means the buyer may have to put an additional 2-3% down to cover the cost of their agent fees.

If you’re planning to buy a home, make sure you understand these new changes and what they could mean for your wallet. Learn more here